CBN Injects $195 Million into Local Market

The Central Bank of Nigeria (CBN), on Monday, injected $195 million into the interbank foreign exchange (forex) market as it seeks to further stabilize the Naira.

Giving a breakdown of funds injected on Monday, The Acting Director, Corporate Communications, Isaac Okorafor, said the apex bank offered $100 million to authorised dealers through the interbank wholesale window, while it allocated $50 million to Small and Medium Enterprises (SMEs) window.

The Invincibles segment, according to the CBN, was allocated $45 million to meet the needs of those who applied for foreign exchange to settle Business/Personal Travel Allowances (PTA), school tuition and medicals.

The Apex Bank revealed that it would continue to ensure adherence to its forex policy by insisting on transparency by stakeholders to guarantee stability in the market.

Stabilizing the Naira

Last year, Nigeria endured a lengthy period of currency instability, owing to tight forex policies that ushered in a period of dollar scarcity and multiple exchange rates. However, in February this year, the Central Bank employed an aggressive intervention policy to ease the economic burdens placed on citizens due to foreign exchange scarcity.

Since February 2017, the bank had boosted transactions at the Investors’ and Exporters’ segment of the market to the tune of $2.2 billion. The CBN also made two major interventions in the interbank Forex market last week, totalling $831.5 million.

Eyeing Inflation

The CBN, in a bid to tackle inflation, unveiled plan late last week to mop up N200.32 billion from the Nigerian banking system through special Open Market Operation (OMO) at the rate of 16 percent per annum.

Meanwhile, the Naira had continued to maintain its stability in the FOREX market, exchanging at an average of N364 to a dollar at the parallel segment of the market on Monday.